> But what if – and hear me out here – Spotify is cheap and the Big Three are greedy?
BTW, Spotify pays 70% of its revenue to copyright holders. How much more does he want Spotify to pay? Note: it's 70% of revenue, not profit.
BTW, Spotify pays 70% of its revenue to copyright holders. How much more does he want Spotify to pay? Note: it's 70% of revenue, not profit.
> Documenting the group’s last show before the coronavirus hit, the pay-what-you-want release generated $4,200 from nearly 700 buyers in just two days. That’s more than 75 Dollar Bill have made through streaming services like Spotify, Apple Music, and YouTube over the last six years. “Streaming is a joke,” Chen tells me. “We might make $100 a year from streaming. On a recent statement of mine, the royalties for one track that had 580 plays on Spotify was zero dollars and 20 cents.”
This article goes into some detail about reasons: https://pirate.com/en/blog/can-bandcamp-compete-with-spotify...
> Unlike Bandcamp, Spotify’s royalty rate is difficult to ascertain, using a model which pays royalties based on the number of artist streams as a proportion of total songs streamed – which benefits the Ed Sheerans and Taylor Swifts of the world far more than it does any struggling artist or independent creator.
> Per stream royalty rates on the platform have been gradually declining for years. One recent estimate suggested the figure averaged around $.00348 per stream, or $3,300 – $3,500 per million plays.
If anyone can explain that "the pricing model disproportionately rewards established artists" claim to me, I'd appreciate it. I've heard that claim a lot, but I don't really understand how the pricing model is bad. (It feels like the kind of pricing model that admits sleight-of-hand, but that's all.)
> explain that "the pricing model disproportionately rewards established artists" claim to me
It's not uncommon, especially in scenarios where distributors can strongarm artists into signing their agreements. In the world of gaming, progressive distribution models are very common, where Steam/Epic/Sony takes a smaller cut as you get sell more units.
The unfortunate fact is that boiling down digital music sales gets you two things - file distribution and payment processing. And the payment processing costs money.